Page 1
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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