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Key Notes: Rural Development | Economics Class 12 - Commerce PDF Download

Introduction

  • Rural development aims to improve economic and social conditions in rural areas.
  • Key areas of improvement: employment opportunities, and agricultural productivity.
  • Significance: Over two-thirds of the population is dependent on agriculture, and one-third lives below the poverty line.

Objectives of Rural Development

  • Enhancing agricultural sector productivity.
  • Creating supplementary sources of income.
  • Improving education and healthcare facilities.
  • Developing infrastructure.
  • Enhancing human resource development.
  • Mitigating poverty.

Key Initiatives in Rural Development

  • Crop diversification.
  • Organic farming.
  • Human resource development.
  • Improved healthcare.
  • Sustainable livelihood alternatives.

Rural Development in India

  • Rural economic growth depends on funding for agricultural and non-agricultural productivity.
  • Long time gaps between sowing and revenue force farmers to borrow for initial costs.
  • After independence, moneylenders exploited poor farmers with high interest rates and unfair practices.
  • In 1969, social banking was introduced, creating agencies for rural credit.
  • NABARD was established in 1982 to oversee rural financial activities.
  • The Green Revolution strengthened rural credit, leading to a productive credit system.
  • Rural banking now includes RRBs, cooperatives, commercial banks, self-help groups, and land development banks, offering affordable credit for rural development.

Sources of Rural Credit

  • Informal sources (moneylenders, relatives, traders).
  • Formal sources (cooperative credit, commercial banks, government institutions, NABARD, self-help groups).

Reasons for Rural Credit

  • Extended time lag between sowing and revenue.
  • Input purchases (seeds, fertilizers).
  • Personal expenditures.
  • Support for agricultural marketing.

Agricultural Marketing

  • Involves assembling, storing, processing, transporting, and distributing agricultural commodities.
  • Measures to improve marketing: regulated markets, cooperative marketing, infrastructural facilities, standardization and grading.

Policy Instruments

  • Minimum Support Price.
  • Buffer Stock.
  • Public Distribution System.

Diversification of Agricultural Activity

  • Crop Diversification: Shifting from single cropping to diverse cropping, including food grains to cash crops, to encourage commercial farming.
  • Labour Shift: With overcrowding in agriculture, workers move to non-agricultural sectors like livestock, poultry, and fisheries for income and sustainable livelihoods.
  • Animal Husbandry: Involves breeding and caring for livestock for economic gain.
  • Fisheries and Horticulture: Fisheries have advanced with funding and technology; horticulture focuses on plant cultivation.
  • IT in Agriculture: Supports sustainable development by promoting alternatives beyond traditional farming.

Role of IT Industries in Agriculture Development

  • Information technology's impact on agriculture.
  • Predicting food insecurity and vulnerability.
  • Circulating information on technologies, prices, and weather.
  • Making every village a knowledge centre.

Organic Farming

  • Cultivation without synthetic chemicals or GMOs.
  • Advantages: affordability, export potential, nutrition.
  • Disadvantages: lack of awareness, infrastructure, and high production costs.

Operation Flood

  • The milk cooperative network was launched in 1966.
  • Focus on milk collection through cooperatives.
  • Success in increasing milk production and market value.

Conclusion

  • Rural sector development is crucial.
  • Need for diversification into various industries.
  • Infrastructure development, farmer-friendly policies, and communication are key to rural transformation.
The document Key Notes: Rural Development | Economics Class 12 - Commerce is a part of the Commerce Course Economics Class 12.
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FAQs on Key Notes: Rural Development - Economics Class 12 - Commerce

1. What is rural development and why is it important?
Ans.Rural development refers to the process of improving the quality of life and economic well-being of people living in rural areas. It is important because it helps reduce poverty, enhance agricultural productivity, and improve access to education, healthcare, and infrastructure, leading to sustainable growth and development in these regions.
2. What are the key components of rural development?
Ans.The key components of rural development include agricultural development, infrastructure development (such as roads and electricity), access to education and healthcare services, sustainable livelihoods, and community participation in planning and decision-making processes.
3. How can technology be used to promote rural development?
Ans.Technology can be used to promote rural development by improving agricultural practices through precision farming, increasing access to information via mobile technology, enhancing market linkages for farmers, and providing e-learning opportunities that can improve education in remote areas.
4. What role do government policies play in rural development?
Ans.Government policies play a crucial role in rural development by providing funding, creating supportive regulations, implementing development programs, and ensuring the participation of local communities in decision-making. Effective policies can lead to improved infrastructure, better access to services, and increased opportunities for economic growth.
5. How can communities participate in rural development initiatives?
Ans.Communities can participate in rural development initiatives by engaging in local governance, contributing to the planning and implementation of projects, participating in skill development programs, and forming cooperatives or groups that advocate for their needs and interests, thereby ensuring that their voices are heard in the development process.
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