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RURAL DEVELOPMENT
Page 2


RURAL DEVELOPMENT
INTRODUCTION
1
Rural Focus
Gandhi believed 
India's true 
progress lies in 
developing villages, 
not just urban 
centers4a 
principle still 
relevant today.
2
Current 
Challenges
Over two-thirds of 
India's population 
relies on agriculture 
that remains 
insufficiently 
productive.
3
Poverty Concerns
With one-fourth of rural India living in poverty, 
rural development remains crucial for national 
progress.
Page 3


RURAL DEVELOPMENT
INTRODUCTION
1
Rural Focus
Gandhi believed 
India's true 
progress lies in 
developing villages, 
not just urban 
centers4a 
principle still 
relevant today.
2
Current 
Challenges
Over two-thirds of 
India's population 
relies on agriculture 
that remains 
insufficiently 
productive.
3
Poverty Concerns
With one-fourth of rural India living in poverty, 
rural development remains crucial for national 
progress.
WHAT IS RURAL 
DEVELOPMENT?
Human Resource 
Development
Focuses on 
literacy, 
education, skills, 
health, and 
sanitation to build 
community 
capabilities.
Infrastructure 
Development
Includes 
electricity, 
irrigation, credit, 
marketing, 
transport, roads, 
and agricultural 
information 
systems.
Poverty Alleviation
Targeted measures to improve weaker 
sections' living conditions through 
productive employment opportunities.
Page 4


RURAL DEVELOPMENT
INTRODUCTION
1
Rural Focus
Gandhi believed 
India's true 
progress lies in 
developing villages, 
not just urban 
centers4a 
principle still 
relevant today.
2
Current 
Challenges
Over two-thirds of 
India's population 
relies on agriculture 
that remains 
insufficiently 
productive.
3
Poverty Concerns
With one-fourth of rural India living in poverty, 
rural development remains crucial for national 
progress.
WHAT IS RURAL 
DEVELOPMENT?
Human Resource 
Development
Focuses on 
literacy, 
education, skills, 
health, and 
sanitation to build 
community 
capabilities.
Infrastructure 
Development
Includes 
electricity, 
irrigation, credit, 
marketing, 
transport, roads, 
and agricultural 
information 
systems.
Poverty Alleviation
Targeted measures to improve weaker 
sections' living conditions through 
productive employment opportunities.
CHALLENGES IN RURAL DEVELOPMENT
Agricultural Decline
While agriculture's 
contribution to GDP has 
declined, dependency on 
this sector remains high. 
Growth decelerated to 3% 
during 1991-2012, lower 
than previous periods.
Recent Volatility
The sector has 
experienced increased 
volatility, with GVA growth 
falling below 1% during 
2014-15, posing significant 
challenges for economic 
stability and future 
growth.
Key Issues
Major challenges include 
reduced public investment 
since 1991, poor 
infrastructure, lack of 
alternative employment, 
and increasing 
casualization of labor.
Page 5


RURAL DEVELOPMENT
INTRODUCTION
1
Rural Focus
Gandhi believed 
India's true 
progress lies in 
developing villages, 
not just urban 
centers4a 
principle still 
relevant today.
2
Current 
Challenges
Over two-thirds of 
India's population 
relies on agriculture 
that remains 
insufficiently 
productive.
3
Poverty Concerns
With one-fourth of rural India living in poverty, 
rural development remains crucial for national 
progress.
WHAT IS RURAL 
DEVELOPMENT?
Human Resource 
Development
Focuses on 
literacy, 
education, skills, 
health, and 
sanitation to build 
community 
capabilities.
Infrastructure 
Development
Includes 
electricity, 
irrigation, credit, 
marketing, 
transport, roads, 
and agricultural 
information 
systems.
Poverty Alleviation
Targeted measures to improve weaker 
sections' living conditions through 
productive employment opportunities.
CHALLENGES IN RURAL DEVELOPMENT
Agricultural Decline
While agriculture's 
contribution to GDP has 
declined, dependency on 
this sector remains high. 
Growth decelerated to 3% 
during 1991-2012, lower 
than previous periods.
Recent Volatility
The sector has 
experienced increased 
volatility, with GVA growth 
falling below 1% during 
2014-15, posing significant 
challenges for economic 
stability and future 
growth.
Key Issues
Major challenges include 
reduced public investment 
since 1991, poor 
infrastructure, lack of 
alternative employment, 
and increasing 
casualization of labor.
CREDIT AND MARKETING IN RURAL AREAS
Historical Context
Post-independence, 
rural communities 
suffered from 
exploitative 
moneylenders charging 
exorbitant interest 
rates, trapping farmers 
and laborers in cycles 
of debt.
Institutional 
Development
Social banking 
approach adopted after 
1969, with NABARD 
established in 1982 as 
the apex institution for 
rural credit 
coordination.
Self-Help Groups
SHGs emerged to 
address formal credit 
gaps. By 2019, 6 crore 
women across 54 lakh 
SHGs received financial 
support through micro-
loans and community 
investment funds.
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