RURAL AREA Where the people are engaged in primary industry in the sense that they produce things directly for the first time in cooperation.
Download ReportTranscript RURAL AREA Where the people are engaged in primary industry in the sense that they produce things directly for the first time in cooperation.
Slide 1
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 2
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 3
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 4
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 5
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 6
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 7
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 8
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 9
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 10
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 11
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 12
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 13
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 14
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 15
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 16
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 17
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 18
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 19
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 20
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 21
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 22
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 23
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 24
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 25
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 26
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 27
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 28
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 29
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 30
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 31
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 32
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 33
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 34
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 35
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 36
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 37
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 38
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 39
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 40
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 41
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 42
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 43
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 44
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 45
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 46
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 47
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 48
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 49
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 50
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 51
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 52
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 53
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 54
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 55
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 56
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 57
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 58
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 59
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 60
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 61
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 62
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 63
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 64
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 65
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 66
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 67
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 68
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 69
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 70
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 71
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 72
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 73
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 74
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 75
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 76
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 77
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 78
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 79
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 80
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 81
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 82
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 83
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 84
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 85
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 2
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 3
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 4
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 5
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 6
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 7
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 8
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 9
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 10
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 11
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 12
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 13
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 14
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 15
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 16
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 17
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 18
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 19
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 20
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 21
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 22
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 23
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 24
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 25
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 26
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 27
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 28
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 29
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 30
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 31
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 32
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 33
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 34
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 35
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 36
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 37
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 38
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 39
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 40
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 41
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 42
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 43
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 44
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 45
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 46
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 47
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 48
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 49
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 50
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 51
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 52
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 53
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 54
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 55
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 56
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 57
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 58
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 59
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 60
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 61
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 62
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 63
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 64
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 65
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 66
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 67
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 68
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 69
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 70
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 71
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 72
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 73
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 74
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 75
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 76
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 77
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 78
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 79
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 80
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 81
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 82
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 83
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 84
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.
Slide 85
RURAL AREA
Where the people are engaged in primary
industry in the sense that they produce
things directly for the first time in
cooperation with nature.
Rural areas are separately settled places away
from the influence of large cities and towns.
Such areas are distinct from more intensively
settled urban and sub-urban areas, and also from
unsettled lands or wilderness, such as forest.
Rural areas can have an agricultural character,
though many rural areas are characterized by an
economy based on cottage industry, mining, oil
and gas exploration, or tourism.
RURAL COMMUNITY
A group of people with a common characteristic or
interest living together, in a village.
A Rural Community can be classified as rural
based on the criteria of lower population density,
less social differentiation, less social and spatial
mobility, slow rate of social change, etc.
Agriculture is the major occupation of rural people.
MAIN FEATURES OF RURAL COMMUNITY
Village is an institutionThe Village is a primary institution. The development of villages is
influenced considerably by the life of the village. It satisfies almost all
the needs of the rural.
CommunityThey have a sense of unity and a feeling of belongingness towards each
other.
ReligionFaith in religion and universal power is found in the life of the villages.
AgricultureMain occupation is agriculture which involves dependence on nature.
Nature gives the livelihood to them. Farmers worship forces of nature.
LIFE OF RURAL PEOPLE
Lifestyles in rural areas are different than those in
urban areas, mainly because limited services are
available.
Governmental services like law enforcement,
schools, fire departments, and libraries may be
distant, limited in scope, or unavailable.
Utilities like water, sewer, street lighting, and
garbage collection may not be present.
Public transport is sometimes absent or very
limited, people use their own vehicles, walk or ride an
animal.
RURAL DEVELOPMENT
Rural development is a strategy designed to
improve the economic and social life of rural poor.
It is a process, which aims at improving the well being
and self realization of people living outside the
urbanized areas through collective process.
Rural Development is all about bringing change
among rural community from the traditional way of
living to progressive way of living. It is also
expressed as a movement for progress.
The United Nations defines
Rural Development as:
“Rural Development is a process of change, by which the
efforts of the people themselves are united, those of
government authorities to improve their economic, social and
cultural conditions of communities in to the life of the nation
and to enable them to contribute fully to national
programme.”
Introduction of rural development
RURAL BUSINESS AND ITS FEATURES
Conducting activities to improve the rural areas
Population
Its is the areas of darkness
Literacy level
Expenditure patterns
Rural and urban areas are not same
Moving towards luxury products
Willingness to buy new products
DEV. IN RURAL AREA CAN BRING
INFASTRUCTURE
ECONOMY
EDUCATION
TECHNO
LOGY
HEALTH
OBJECTIVES OF RURAL DEV.
1. To develop farm, home, public service and village
community.
2. To bring improvement in producing of crops and
animals living condition.
3. To improve health and education condition etc.
improvement of the rural people.
4. To improve villagers with their own efforts.
5. To improve village communication.
Main Objectives
To build
Infrastructure
Public Service
Communication
To improve
Health
Education
Living condition
To generate
Employment
Farm & storage
Economical
activities
PROBLEMS IN RURAL DEVELOPMENT
1. People related
2. Agricultural related problems
3. Infrastructure related problems
4. Economic problems
5. Social and Cultural problems
6. Leadership related problems
7. Administrative problems
PEOPLE RELATED PROBLEMS
1. Traditional way of thinking.
2. Poor understanding.
3. Low level of education to understand developmental
efforts and new technology.
4. Deprived psychology and scientific orientation.
5. Lack of confidence.
6. Poor awareness.
7. Low level of education.
8. Existence of unfelt needs.
9. Personal ego.
AGRICULTURE RELATED PROB.
1. Lack of expected awareness, knowledge, skill and
attitude.
2. Unavailability of inputs.
3. Poor marketing facility.
4. Small size of land holding.
5. Unwillingness to work and stay in rural areas.
INFASTRUCTRAL RELATED PROB.
Poor infrastructure facilities like-:
1. Water
2. Electricity
3. Transport
4. Educational institutions
5. Communication
6. Health
7. Employment
8. Storage facility etc.
ECONOMIC PROBLEMS
1. Unfavourable economic condition to
technology.
2. High cost of inputs.
3. Under privileged
rural industries
adopt high cost
LEADERSHIP RELATED PROBLEM
1. Leadership in few hands.
2. Self interest of leaders.
3. Biased political scenario
ADMINISTRATIVE PROBLEMS
1. Political interference.
2. Lack of motivation and interest.
3. Unwillingness to work in villages.
4. Improper utilization of budget.
5. No proper monitoring of programs
that lack in their implementation.
SCOPE & IMPORTANCE OF RURAL
DEVELOPMENT
Importance of Rural Development
Rural development is a dynamic process, which is
mainly concerned with the rural areas. These includeAgricultural growth, putting up of economic and social
infrastructure, fair wages as also housing and house
sites for the landless, village planning, public health,
education and functional literacy, communication etc.
Rural development is a national necessity and has
considerable importance in India
Rural development is needed because-:
1. To develop rural area as whole in terms of culture, society,
economy, technology and health.
2. To develop living slandered of rural mass.
3. To develop rural youths, children and women.
4. To develop and empower human resource of rural area in
terms of their psychology, skill, knowledge, attitude and
other abilities.
5. To solve the problems faced by the rural mass for their
development.
6. To develop infrastructure facility of rural area.
7. To provide minimum facility to rural mass in terms of
drinking water, education, transport, electricity and
communication.
8. To develop rural institutions like Panchayat, cooperatives,
post, banking and credit.
9. To develop rural industries through the development of
handicrafts, small scaled industries, village industries, rural
crafts, cottage industries and other related economic
operations in the rural sector.
10. To develop agriculture, animal husbandry and other
agricultural related areas.
11. To restore uncultivated land, provide irrigation facilities
and motivate farmers to adopt improved seed, fertilizers,
package of practices of crop cultivation and soil conservation
methods.
12. To develop entertainment and recreational facility for
rural mass.
13. To develop leadership quality of rural area.
14. To improve rural marketing facility.
15. To minimise gap between the urban and rural in terms of
facilities availed.
16. To improve rural people’s participation in the
development of state and nation as whole.
17. To improve scopes of employment for rural mass.
18. For the sustainable development of rural area.
19. To eliminate rural poverty.
20. To empower them.
Importance of the rural markets to the country
Enhanced GDP of the country
Competitive advantages for the nation
Increased per capita income of rural people
provides an opportunity for the businesses
The needs of the people are transforming
Need identification of rural producers
Problem in reaching the Urban areas
Low Literacy and expertise
Lack of funds
Establishing the distribution channel
Lack of support
High competition
Distribution management in rural areas
Ration shops
Retailers in agriculture inputs
Semi-wholesalers in mandi
Social and Cultural Environment
33
Variations between regions and sub-regions
In villages inward migration is insignificant while outward
migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste
lines
Houses are largely semi-pucca and kacha
Land is the primary source of livelihood
Activities limited to smaller geographic areas resulting in
higher adherence to customs and traditions
Village Community
34
Villages are self-sufficient and autonomous
Each village has a council of elders (panchayat)
Panchayats have the constitutional authority for exercising
self-governance
The panchayat structure has undergone change with
elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed
farming has made the village dependent on external factors
Caste System
35
The rural society has a strong caste system:
Brahmins
Kshatriyas (Warriors)
Vaishyas (Business Class and traders)
Shudras (involved in odd jobs) – Untouchables
The settlements of the lower castes are normally on the
outskirts of the village
Marketers have to be sensitive to the caste system
especially in the area of communication
RMB 02
Political Environment
36
The rural areas were dominated by upper castes
The panchayati raj system has introduced an integrated
and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with
a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring
in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/
block level
Structure dynamics and Development in
rural India post independence
Since independence the Government of India has
launched various programmes of ‘planned change’
encompassing social, economic and political
processes. There are two approaches adopted by the
government with regard to the patterns of
development. These approaches are (a) the
‘transformation’ approach and (b) the ‘improvement
‘approach.
Development in rural India post
independence
The ‘transformation’ approach attaches importance
to a radical change in the existing system in terms of
scale of operation, production techniques, and sociolegal reforms. Implementation of land reform
measures comes within the purview of this approach.
So far as the land reform measures are concerned, a
large number of tenants or farmers have now
become the owners of the land that they are
cultivating.
Development in rural India post
independence
Co-operative farming has been advocated to solve
the problems of sub-division and fragmentation of
holdings. Through the Bhoodan movement efforts
are being made to provide the landless labourers
with land. Efforts are also being made for the
compilation and updating of the land records.
Development in rural India post
independence
The ‘improvement’ approach seeks to bring about
agricultural development within the existing
production system. It attaches importance to the
programmes of rural development such as the
Community Development Programme, Panchayati
Raj Institutions and other programmes and agencies
related to the process of development in rural India.
Development in rural India post
independence
According to the Planning Commission, community
development is the process of changing the life of a
community from backwardness to a new economic
and social order through its open efforts. The
Community Development Programme undertaken by
the government of free India on 2nd October 1952 –
the day of Gandhi Jayanti – constitutes the biggest
rural reconstruction scheme.
Development in rural India post
independence
The programme is instrumental in raising the
standard of living of the ruralites and in
reconstructing the rural India. Prof. Carl Taylor
rightly observes that the programme signifies active
co-operation and involvement of the ruralites in
formulating and executing their own plans and
programmes.
IRDP
The Integrated Rural Development Programme
signifies a programme for improving the living
standards of the poorest of the poor living in rural
areas and for making the process of rural
development self-sustaining. Initiated in 1978-79,
the programme was extended to all development
blocks in the country in 1980-81.
NREP
National Rural Employment Programme was
launched in October, 1980 as a centrally sponsored
scheme on 50:50 sharing basis between centre and
states. Generating additional gainful employment
opportunities, creating durable community assets
and improving the overall quality of life in rural
areas constitute the three -fold objectives of the
programme. The programme is implemented
through DRDA. It has been merged with the Jawahar
Rozgar Yojna from April, 1989.
The scheme of Training Rural Youth for Self-
Employment was initiated in August, 1979, with the
primary objective of providing technical skills to the
rural youth to enable them to seek employment in
fields of agriculture, industry, services and business
activities.
Only youth in the age group of 18 – 35 and belonging
to families living below the poverty line are eligible
for training. Priority is given to persons belonging to
SCs and STs, ex-servicemen and women. The
effectiveness of the scheme is affected by several
factors such as inadequate coverage, low level of
Jawahar Rozgar Yojna was launched in April, 1989.
It is pre-eminently a wage employment programme.
Under the scheme, it is expected that at least one
member of each poor family would be provided with
employment for 50 to 100 days in a year at a work
place near his / her residence. About 30 per cent of
the jobs under this scheme are reserved for women.
The scheme is implemented through Village
Panchayats. It covers 46 per cent of our population.
Antyodaya Programme:
Antyodaya means the welfare of a person standing at
the end of the queue. In other words, the programme
is oriented to uplift the poorest of the poor in the
countryside. The scheme was introduced during the
regime of Janata Government in 1978. So far as the
operation of this programme is concerned, every year
five poorest families of every village are identified
and selected. Efforts are made for the economic
betterment of these families.
EAS:
The Employment Assurance Scheme was launched in
1983 and expanded in phases to cover the whole
country in 1996. It aims at providing 100 days of
employment to two members of a rural family in a
year. The secondary objective is the creation of
economic infrastructure and community assets for
sustained production and employment generation.
The expenditure under EAS is shared between the
centre and the states on an 80: 20 basis.
SGSY:
The Swarnajayanti Gram Swarozgar Yojana was
launched in April 1999 replacing earlier programmes
like the IRDP, the TRYSEM etc. This programme is
instrumental in the setting up of a large number of
industries through bank credit and subsidy. It plays
an important role in enabling the poor families to
rise above the poverty line in three years.
NSAP:
The National Social Assistance Programme was
conceived by the central government to provide
social assistance to poor households. The
programme came into force from 15th August 1995
and includes three schemes as its components such
as National Old Age Pension Scheme, National
Family Benefit Scheme and National Maternity
Benefit Scheme.
Warana – The Wired Village
Information and Communications Technology (ICT)
can be used as an effective tool for rural
development. An example of the adoption of ICT by
a rural community is the Warana “Wired Village”
project, in the state of Maharashtra, India. There,
the local cooperative is using ICT to streamline the
operations connected with sugar cane growing and
harvesting. This is benefiting small farmers, both in
terms of transparency and time saved on
administrative transactions, as well as the
cooperative, in terms of monetary gains.
Warana is a well-developed rural area located 30
kilometers northwest of the city of Kolhapur, in one
of the richest states of India, Maharashtra. Much of
Warana’s success is due to the presence of a strong
co-operative movement. About 50,000 farmers live
in 100 villages spread in the 25,000-sq. kilometer
area covered by the co-operative. The main economic
activity is sugar cane growing and processing.
ICT was brought to this area by the Warana "Wired
Village" project, launched in 1998 as a collaboration
between the National Informatics Centre (NIC), the
Government of Maharashtra, the Warana Vibhag
Shikshan Mandal (Education Department). The right
conditions to bring ICT to Warana exist both in terms of
human development and of infrastructure, as, for
instance, there is uninterrupted power supply in the
area. The project aims at bringing agricultural, market
and educational information to 70 villages around
Warana Nagar and intends to simplify other business
operations of the co-operative. Many of these features
have not been implemented yet.
Warana is an example of a rural community, which
has been able to empower its people not only with
stable sources of employment, but also through
participation, and access to health, education and
financial services. All decisions concerning the sugar
factory are taken by an elective body, the 19-member
board of the sugar co-operative. Elections take place
every five years in the 100 villages around Warana:
three members are elected from each of five clusters
of villages, while two seats on the board are reserved
for women and two for representatives of backward
castes. The board, in turn, elects a chairman and a
vice-chairman
The sugar cane factory, which produces 110,000 tons
of sugar per year, employs 8,000 workers and
collects sugar cane from about 35,000 farmers, is the
main source of income for the Warana
community. Other important centres of economic
activity are a milk factory, a food-processing unit, a
chain of department stores, poultry farming, and a
series of women’s co-operatives. The milk factory
employs 1,200 workers and collects 280,000 litres of
milk per day from the 125 milk societies belonging to
the dairy co-operative
Presently, however, the cooperative is facing a series
of economic and social challenges. These include
low sugar prices and difficulties in coordinating the
many activities of a large and growing cooperative,
which lead to losses in terms of efficiency and
transparency. A big challenge is also to retain
educated youth in the area when the prospects of
better opportunities elsewhere.
UNIT 2
About India:
58
Area: 3,287,590 sq km
Population: 1,188,310,000
Literacy : 61%
Government: Federal Democratic Republic
Unemployment: 10.7%
GDP: $3.57 trillion
Chief Occupations: Agriculture is the chief
occupation of the country followed by service and
industrial jobs.
Our Natural Resources Wealth
59
Land
Arable Land: 48%
Forests: 22%
Water
Total renewable water resources: 1,907.8 km3/year
Soil
Many fertile soils including alluvial soil which comprises 80% of the total fertile
soil available
Minerals
India occupies a prominent place in the world in the production of many
minerals. The chief minerals include Coal, iron ore, manganese, mica, bauxite,
titanium ore, chromite, diamonds, limestone, thorium, petroleum, natural gas
Energy
India makes use of both renewable and non renewable energy resources. Energy
resources include natural gas, thermal, hydro, nuclear and other renewable
sources.
Our Natural Resources Wealth
60
Vegetation
India has diverse vegetation which includes tropical rainforests,
deciduous forests and coniferous forests. India has 6 % of the
world’s flowering plants.
Wildlife
India has many species of animals, birds and reptiles which includes
7.6% of all mammalian, 12.6% of avian, 6.2% of reptilian of the
wildlife population in the world Asian Elephant, Bengal Tiger, Asiatic
Lion, Leopard, Sloth Bear and Indian Rhinoceros, antelopes are
some of the important animals.
Natural Resources Chart
61
3
2
1
0
Arable Land Forests
Fertile Soil
Water
resources
Wildlife
Vegetation
Minerals
Energy
What is calling for our
attention?
India as country is blessed with rich natural
resources. But from our research on the usage of
natural resources in our country, we found that the
resources are depleting every day. For example:
Forest and arable land is being depleted due to urbanization,
overpopulation and overconsumption
Wild life resources are being lost due to illegal poaching,
hunting and industrialization.
Water resources are being contaminated are drying up due to
industrialization.
Threats to Natural Resources
63
Urbanisation and Industrialisation
Overpopulation
Overconsumption and irresponsible use
Deforestation
Erosion
Habitat Destruction
Natural Hazards
No proper access to resources such as water
Doing what matters!
What are we doing to save our
The Governmentresources?
of India has undertaken many
65
measures for the conservation of the resources
Regulations and reforms for proper housing and
infrastructure development to avoid land acquisition
problems
Mass media public service messages to educate the people on
the importance of conservation of resources
Increase the wildlife and forest reserves in the country
Schemes to do a proper inventory of the resources and
monitor changes in the environment.
Various projects and schemes that promote conservation of
resources.
Proposed Action
Plan
66
Problems
Solutions
Overpopulation
Develop population control measures and
educate people on the advantages of a small
family.
Overconsumption and irresponsible use
Educate people on the importance of
conservation of resources using mass
media. Develop partnerships with advocacy
groups and environmental NGOs for
spreading the message.
No proper access to resources
Privatization of the some of the resource
management function will help in better
developing the delivery mechanism
Deforestation and Habitat destruction
Have stringent regulations for the
protection of the resources and ensure that
the defaulters are punished
Natural Hazards
Develop and employ tools for monitoring
the possibility of natural hazards and
providing preventive measures
Overview of rural production system
The Rural Economy in India is wholly agriculture
based and it is of tremendous importance because it
has vital supply and demand links with the other
Indian industries. Agriculture is the main stay of the
Indian economy, as it constitutes the backbone of
rural India which inhabitants more than 70% of total
Indian population. The fertility of the soil has
augmented the success of agriculture in India.
Further, Rural Economy in India has been playing an
important role towards the overall economic growth
and social growth of India
India has been predominantly an agriculture-based
country and it was the only source of livelihood in
ancient time. During prehistoric time when there
was no currency system the India economy system
followed barter system for trading i.e. the excess of
agricultural produce were exchanged against other
items. The agriculture produce and system in India
are varied and thus offers a wide agricultural product
portfolio
The rural/agricultural workforce has a high
proportion of family-owned and managed
businesses. Commercial farming is a small part of
the total industry.
There has been development towards specialisation
in intensive animal industries. In the past many
mixed farms were varied and grew relatively small
amounts of several products, including plants and
animals.
Industry sectors are cotton, dairy, goats, grains,
horse breeding, milk harvesting, poultry, production
horticulture, rural business, sheep and wool, sugar
cane, wool harvesting.
Many of these industries are labor intensive and
hence requires a huge number of people to work
hard thus providing employment to many
Women are actively involved in agriculture in rural
areas, as farmers, providers of food and
entrepreneurs often operating with little resources
and capacity. Ensuring inclusion of women in
extension, skill development and other areas for
capacity development should be part of the strategies
for the enhancement of rural agriculture
The horticulture sector encompasses a wide range of
crops e.g., fruit crops, vegetable crops, potato and
tuber crops, ornamental crops, medicinal and
aromatic crops, spices and plantation crops. India,
with its wide variability of climate and soil, is highly
favourable for growing a large number of
horticultural crops. It is the fastest growing sector
within agriculture.
It contributes in poverty alleviation, nutritional
security and have ample scope for farmers to
increase their income and helpful in sustaining large
number of agro-based industries which generate
huge employment opportunities. Presently
horticulture contributes 28 per cent of agricultural
GDP. The national goal of achieving 4.0 per cent
growth in agriculture can be achieved through major
contrib
Sericulture is both an art and science of raising
silkworms for silk production. India is the second
largest producer of raw silk after China and the
biggest consumer of raw silk and silk fabrics. An
analysis of trends in international silk production
suggests that sericulture has better prospects for
growth in the developing countries rather than in the
advanced countries.
Silk production in temperate countries like Japan,
South Korea, USSR etc., is declining steadily not only
because of the high cost of labour and heavy
industrialization in these countries, but also due to
climatic restrictions imposed on mulberry leaf
availability that allows only two cocoon crops per
annum. Thus, India has a distinct advantage of
practicing sericulture all through the year, yielding a
stream of about 4 – 6 crops as a result of its tropical
climate.
In India, sericulture is not only a tradition but also a
living culture. It is a farm-based, labour intensive
and commercially attractive economic activity falling
under the cottage and small-scale sector. It
particularly suits rural-based farmers, entrepreneurs
and artisans, as it requires low investment but, with
potential for relatively higher returns. It provides
income and employment to the rural poor especially
farmers with small land-holdings and the
marginalized and weaker sections of the society.
Several socio-economic studies have affirmed that
the benefit-cost ratio in sericulture is highest among
comparable agricultural crops
Forestry in India is a significant rural industry
and a major environmental resource. India is one of
the ten most forest-rich countries of the world along
with the Russian Federation, Brazil, Canada, United
States of America, China, Democratic Republic of the
Congo, Australia, Indonesia and Sudan. Together,
India and these countries account for 67 percent of
total forest area of the world.[India's forest cover
grew at 0.22% annually over 1990-2000,[3] and has
grown at the rate of 0.46% per year over 20002010, after decades where forest degradation was a
matter of serious concern.
A large number of farmers in India depend
on animal husbandry for their livelihood. In
addition to supplying milk, meat, eggs, wool
and hides, animals, mainly bullocks, are the major
source of power for both farmers and drayers. Thus,
animal husbandry plays an important role in the
rural economy. The gross value of output from this
sector was 358 billion (US$5.9 billion) in FY 1989,
an amount that constituted about 25 percent of the
total agricultural output of 1.4
trillion (US$23.0 billion)
Fisheries in India is a very important economic
activity and a flourishing sector with varied
resources and potentials. Only after the Indian
Independence, has fisheries together with agriculture
been recognized as an important sector. The
vibrancy of the sector can be visualized by the 11–
fold increase that India achieved in fish production
in just six decades, i.e. from 0.75 million tonnes in
1950-51 to 9.6 million tonnes during 2012–13.
This resulted in an unparalleled average annual
growth rate of over 4.5 percent over the years which
has placed the country on the forefront of global fish
production, only after China. Besides meeting the
domestic needs, the dependence of over 14.5 million
people on fisheries activities for their livelihood and
foreign exchange earnings to the tune of US$ 3.51
billion (2012–13) from fish and fisheries products,
amply justifies the importance of the sector on the
country's economy and in livelihood security.
India is also an important country that produces fish
through aquaculture in the world. India is home to
more than 10 percent of the global fish diversity.
Presently, the country ranks second in the world in
total fish production with an annual fish production
of about 9.06 million metric tonnes.
The importance of dairying in a country like India
hardly needs emphasizing. India has vast resources
of livestock, which play an important role in the
national economy and also in the socioeconomic
development of millions of rural households. India
has one of the largest stocks of cattle and buffaloes:
more than 50 percent of the world's buffaloes and 20
percent of its cattle.
The Indian dairy sector contributes a large share of
the agricultural gross domestic product (GDP).
Although the contribution of agriculture and allied
sectors to the national GDP has declined during the
past few decades, the contribution of the livestock
sector has increased from less than 5 percent in the
early 1980s to over 6 percent in the late 1990s. Milk
and milk products constitute a major share of the
value of output from the livestock sector; their share
increased from less than 50 percent in 1950-51 to
about 65 percent in the late 1990s.