Institutions and Agencies Since Independence | Public Administration Optional for UPSC (Notes) PDF Download

Introduction

India, known as the land of villages, has a significant rural population, accounting for 70% of its total population according to the Census of India's 2011 Provisional Population Totals of Rural-Urban Distribution. However, many rural areas face poor socio-economic conditions, emphasizing the need for rural development. The growth rate of rural areas directly impacts the overall national growth rate. This article explores the historical perspective of rural development in India, key institutions and agencies involved, and their contributions since independence.

Historical Perspective of Rural Development

In ancient times, villages in India were self-sufficient and resembled small republics. Rulers made efforts to improve the living conditions of their respective villages. However, during the British colonial era, the local government structure was established to ensure revenue collection and control. This led to the exploitation of rural areas by the British, negatively impacting the economy. The concept of local self-government gained traction in the late 19th century, with initiatives such as Lord Ripon's Resolution of 1882 and the Government of India Act of 1919. During the independence struggle, village communities gained prominence, with Panchayats becoming the foundation of local self-government.

Institutions and Agencies Since Independence

• The Ministry of Rural Development: The Ministry of Rural Development is the apex body responsible for policy formulation, regulations, and acts related to rural sector development in India. It encompasses departments focused on land resources and rural development. The Department of Land Resources aims to increase productivity, implement land reforms, and support integrated watershed management. The Department of Rural Development facilitates services such as training, research, and project execution for poverty alleviation, employment generation, and rural infrastructure development.
• Rural Development Division of Planning Commission: The Rural Development Division provides policy guidance for formulating plans and programs related to poverty eradication, employment generation, and watershed development. It collaborates with various ministries, state governments, and institutions to collect information, assess progress, and finalize plan proposals.
• District Rural Development Agencies (DRDA): The DRDAs, registered under the Societies Registration Act,1860, play a crucial role in implementing and supervising rural development programs. They receive substantial funds from the Government of India under centrally sponsored schemes. While some states have merged DRDAs with Panchayats, allowing decentralization, others maintain separate bodies with varying levels of coordination.
• National Bank for Agriculture and Rural Development (NABARD): Established in 1982, NABARD focuses on providing credit and financial support to the rural sector. It replaced the Agricultural Credit Department and Rural Planning and Credit Cell of the Reserve Bank of India. NABARD refinances loans provided by financial agencies for various rural activities and maintains connections with the Reserve Bank of India.
• Haryana State Cooperative Apex Bank Limited (HARCOBANK): HARCOBANK serves as a financial institution supporting rural development in Haryana. It offers financial assistance to artisans, farmers, entrepreneurs, and rural laborers through various loan schemes, deposit schemes, and staff loan facilities. HARCOBANK has received awards for its performance in profitability, recovery, and outreach.
• Regional Rural Banks: Established in 1975, regional rural banks aim to provide credit to economically weaker sections, including small and marginal farmers, artisans, and agricultural laborers. While financial viability remains a concern, these banks have played a significant role in promoting rural development.
• Microfinance Institutions, NGOs & Foundations: Microfinance institutions, supported by NABARD, provide financial services to micro-entrepreneurs and small businesses in rural areas where traditional banking services are limited. These institutions operate through relationship-based banking and group-based models. The Government of India recently launched the National Rural Livelihood Mission (NRLM) to promote self-employment and entrepreneurship opportunities for rural communities. Various NGOs and foundations also contribute to rural development through their initiatives in areas such as education, healthcare, skill development, and women empowerment.

Contributions and Impact

The institutions and agencies mentioned above have made significant contributions to rural development since India's independence. Some of the notable impacts include:

• Poverty Alleviation: Through various poverty eradication programs and initiatives, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), these institutions have helped in reducing poverty levels by providing employment opportunities and income support to rural households.
• Infrastructure Development: Efforts have been made to improve rural infrastructure, including the construction of roads, bridges, schools, healthcare centers, and irrigation facilities. This has enhanced connectivity, access to basic services, and agricultural productivity in rural areas.
• Financial Inclusion: Institutions like NABARD, regional rural banks, and microfinance institutions have played a vital role in providing financial services to rural communities. This has promoted financial inclusion, supported agricultural activities, and facilitated rural entrepreneurship.
• Skill Development and Capacity Building: Training programs and skill development initiatives have been implemented to enhance the capabilities of rural individuals, enabling them to participate in various economic activities and improve their livelihoods.
• Women Empowerment: Many agencies and programs have focused on empowering rural women by providing them with training, access to credit, and opportunities for self-employment. This has led to increased women's participation in decision-making processes, entrepreneurship, and community development.
• Sustainable Agriculture and Natural Resource Management: Institutions like the Ministry of Rural Development and NABARD have promoted sustainable agriculture practices, watershed management, and conservation of natural resources. These efforts have contributed to improved agricultural productivity, soil health, and environmental sustainability.

Conclusion

Rural development in India has been a priority since its independence, considering the significant rural population and the need to address socio-economic disparities. Institutions and agencies such as the Ministry of Rural Development, DRDAs, NABARD, and microfinance institutions have played crucial roles in promoting rural development through their policies, programs, and financial support. Their contributions have led to poverty reduction, infrastructure development, financial inclusion, skill enhancement, women empowerment, and sustainable agricultural practices in rural areas. However, ongoing efforts and collaborative approaches are necessary to ensure inclusive and holistic rural development, addressing the diverse needs and challenges of rural communities in India.