Innovations in Rural

Development

Presented by,
Dr.G.Selvakumar,
Professor,
Department of Rural and Entrepreneurship Development,
National Institute of Technical Teachers Training and Research
(NITTTR), Chennai.
Overview
 Rural development is the process of improving the quality of life and
economic well-being of people living in rural areas. Traditionally, rural
development was centred on the misuse of land-intensive natural
resources such as forestry and agriculture. However today, the increasing
urbanisation and the change in global production networks have
transformed the nature of rural areas.
 Rural development still remains the core of the overall development of the
country. According to 2011 Census 68.84% of population lives in villages.
The backwardness of the rural sector would be a major impediment to the
overall progress of the economy. India is predominately an agricultural
country and farming is their main occupation.
 According to 2011 Agricultural Census of India, an estimated 61.5%
dependent on agriculture. Technical developments in field of agriculture
have increased the gap between the rich and poor, as the better off
farmers adopted modern farm technology to a greater extent than the
small farmers.
 About one-third of rural India is still below the poverty line. Therefore, it is
important for the government to be productive and provide enough
facilities to upgrade their standard of living.
Rural development is a term that concentrates
on the actions taken for the development of
rural areas to improve the economy. However,
few areas that demand more focused attention
and new initiatives are:
Education
Public health and Sanitation
Women empowerment
Infrastructure development (electricity, irrigation,
etc.)
Facilities for agriculture extension and research
Availability of credit
Employment opportunities
Importance of Rural Development

 Rural development is important not only for the majority of

the population residing in rural areas, but also for the overall
economic expansion of the nation.
 Rural development is considered to be of noticeable
importance in the country today than in the olden days in the
process of the evolution of the nation. It is a strategy that tries
to obtain an improved and productivity, higher socio-
economic equality and ambition, and stability in social and
economic development.
 The primary task is to decrease the famine that exists in
roughly about 70 percent of the rural population, and to make
sufficient and healthy food available.
 The secondary task is to ensure the availability of clothing and
footwear, a clean environment and house, medical attention,
recreational provision, education, transport, and
communication.
Objectives of Rural Development

The objectives composed by the government in

the sixth five year plan for rural
development are:
To achieve enhanced production and productivity in
rural areas
To bring about a greater socio-economic equity
To bring about a spatial balance in social and
economic development
To bring about improvement in the ecological
environment so that it may be conducive to growth
and happiness
To develop broad based community participation in
the process of development.
Process of Rural Development

1. Human Resource Development: The quality

of human resources must be improved through:
 Proper attention to literacy (particularly female
literacy), schooling and skill development,
 Better health facilities for physical growth, and
 Sanitation facilities in homes and workplaces.

2. Infrastructure Development: Infrastructure

development involves improvement
in electricity, irrigation, credit, marketing, and
transportation facilities, and improved
agricultural research, extension, and
information dissemination.
3. Land Reforms: Its objectives include the elimination
of exploitation from land relations, realisation of the
‘land to the tiller’ objective, widening the rural poor’s
land base that improves their socioeconomic
circumstances, and improving agricultural productivity.
4. Poverty Alleviation: Approximately 22% of the total
population is still poor or below the poverty line, and
approximately 75% of the total poor (approximately
27.82 crores) reside in rural regions. Specific
measures/schemes for poverty relief must be
implemented.
5. Development of Productive Resources: Productive
resources in each rural location are to be identified and
developed so that existing resources can be used to
their full potential and opportunities for investment and
employment in farm and non-farm areas can be
developed.
Evaluation of Rural Development

The rural sector of the country will remain

backwards until the authorities make some
spectacular changes. Some of the changes that are
required for rural development are as follows:
1. Stress on Diversification: Rural areas should
be made more vibrant by diversifying into poultry,
dairy, fishery, fruits, and vegetables.
2. Better Facilities: It is essential to make proper
efforts for the development of state agricultural
departments, infrastructure elements such as
marketing and credit, farmer-friendly agricultural
policies, and constant appraisal and dialogue
between farmers’ groups.
3. Rural and Urban Linkage: It is also
necessary to make efforts to link up the
rural production centres with the foreign
and urban markets in order to realise high
returns on the products’ investment.
4. More emphasis on Sustainable
Development: The need to invent or
procure different alternatives of eco-
friendly technologies leading to sustainable
development in various circumstances has
also developed.
Rural Credit

 Agriculture is the primary source of income for people

living in India’s rural areas.
 Farmers and peasants have to invest a significant
amount of funds each year to guarantee a healthy
crop.
 As a result, they frequently borrow money from
moneylenders and financial institutions to meet their
basic requirements before harvest season so they can
make money by selling their crops.
 Thus, Agricultural Rural Credit refers to any loan
taken for agricultural reasons or small home
enterprises in India’s rural regions.
Purpose of Credit Requirement

 The rural economy’s growth is primarily dependent on

capital infusions from time to time to achieve better
productivity in agriculture and non-agriculture sectors.
 Farmers borrow from various sources to meet their initial
investment in seeds, fertilisers, tools, and other family costs
such as marriage, funerals, religious rituals, and so on,
because the time gap between crop sowing and realisation
of income after production is quite long.
 Moneylenders and merchants abused small and marginal
farmers and landless labourers during the freedom period by
lending them at high interest rates and manipulating their
accounts to keep them in debt.
 After 1969, India implemented social banking and a
multiagency strategy to properly satisfy the requirements of
Agricultural Rural Credit.
 Rural areas frequently suffer from poor income, which
leads to a low rate of savings. Farmers have a tough
time increasing their productivity by spending on
farmland.
 Credit in many ways helps farmers to commercialise
their farming.
 Even though small and marginal farmers produce only
for subsistence, they do not generate enough surplus to
reinvest in their lands, resulting in land deterioration.
 Agriculture has always been dependent on the weather.
Farmers suffer the most when there is no rainfall or
harvest failure.
 Crop insurance and agricultural rural credit are thus
critical in saving them from such disasters.
Need for Rural Credit

There are two angles through which the credit

needs of the farmers can be examined. These are:
 On the Basis of Time
 On the Basis of Purpose
1. On the Basis of Time: Based on time, there
are three categories under which the credit needs
can be classified:
 Short-term Credit: The credit taken by the farmers
for a period of less than 15 months in order to meet
their short-term needs is known as Short-term Credit.
The purpose of short-term credit is to purchase seeds,
pay wages to the hired workers, buy fertilisers, etc.
The repayment of such credit can be made out of the
farmer’s current income.
 Medium-term Credit: The credit taken by the farmers
for a medium period between 15 months and 5 years is
known as Medium-term Credit. The purpose of medium-
term credit is for productive activities (purchase of
agricultural implements, cattle, etc.) and unproductive
activities (expense on social functions, marriage, etc.).
 Long-term Credit: The credit taken by the farmers for
a long period of more than 5 years, which can even
extend to 15 to 20 years in order to meet long-term
needs is known as Long-term Credit. The repayment of
such loans is done over a long time period. The purpose
of Long-term Credit is to dig tubewell, repay old debts,
purchase of large agricultural implements, etc.
2. On the Basis of Purpose: Based on purpose, there
are two categories under which the credit needs can
be classified:
Productive Loans: The loans which help the farmers
raise agricultural productivity and production are
known as Productive Loans. For example, loans
taken by the farmers to buy seeds, farm implements,
fertilisers, or to make permanent improvements on
their land.
Unproductive Loans: The loans which do not help
the farmers raise agricultural productivity and
production are known as Unproductive Loans. For
example, loans taken for marriage, religious
functions, social functions, etc.
Sources of Rural Credit in India
 The two sources of rural credit from which the farmers can
raise loans are as follows:
1. Non-institutional Sources (Informal):
 It constitutes of cash lenders, free agents, landlords,
relatives, and friends. Historically, non-institutional sources
satisfied or fulfilled the majority of farmers’ credit
requirements due to their simpler loan procedures and
willingness to give even for unproductive purposes.
 However, due to restricted resources, they were unable to
satisfy their medium and long-term needs/requirements.
These sources accounted for roughly 93% of the full credit
score requirement of the agricultural people in 1950-51 and
at present account for 30% of the most effective credit score
requirement.
 They used to take advantage of small and marginal farmers
by asking high rates of interest and manipulating accounts
to keep them in debt.
The major non-institutional sources of rural credit are:
 Moneylenders: Moneylenders have long been a source of credit for
many agricultural households in India’s rural credit environment.
However, they exploit peasants through high rates of interest and
even manipulate their accounts to keep them in debt.
 Traders and Commission Agents: Traders and commission
agents give loans to agriculturists for productive reasons before
crop maturity and then compel farmers to sell their harvests at very
low rates to them while charging a high fee. This form of loan is
typically used for cash crops.
 Relatives: In times of crisis, cultivators frequently borrow funds
from their own relatives, either in cash or in kind. These are informal
debts that have no interest and are usually repaid after harvest.
 Rich Landlords: In India, small and marginal cultivators and
tenants are also accepting loans from landowners to satisfy their
financial requirements. This source has been following all of the bad
practices of moneylenders, merchants, and so on. Landless workers
are sometimes forced to work as bonded laborers.
2. Institutional Sources (Formal):

 It is mainly composed of the government, cooperative

societies, rural municipal financial institutions, industrial
financial institutions, and other entities. It accounted for
the most efficient 7% of the general credit score
requirement at the start of the main five years plan (in
1950-51), but it is now due for approximately 70%.
 Some of the Institutional sources of rural credit are as
follows:
 Co-operative Credit: The main goal of co-operatives is
to free Indian peasants from the clutches of moneylenders
and provide them with credit at low interest rates. This is
the most cost-effective and essential source of rural
financing. It was established with the goal of facilitating
small and medium-sized farmers’ complete financing
requirements.
 Land Development Banks: These institutions lend
money to farmers in exchange for a lien on their
property. Loans are available for permanent property
improvement, the purchase of farming tools, and the
repayment of past obligations.
 Commercial Bank Credit: Commercial banks initially
played a minor part in promoting rural credit. However,
after nationalisation in 1969, they extended their rural
branches and began directly financing farmers.
 Regional Rural Banks: India is an agriculturally
oriented nation with a large population engaged in the
agricultural sector. Thus, in order to utilise this sector
and connect Indian farmers with banks in order to
facilitate financial transactions, the Government of India
established Regional Rural Banks. (RRB). Regional rural
banks in India play a key role in providing banking
facilities to farmers living in remote areas.
 National Bank for Agricultural and Rural Development
(NABARD): National Bank for Agriculture and Rural
Development (NABARD) is the Apex Bank which has to
coordinate the functioning of various financial institutions that
are working for the expansion of rural credit. The basic
objective of NABARD is to promote the health and strength of
credit institutions including commercial banks, cooperatives,
and regional rural banks. It also provides assistance to the
non-farm sectors for the promotion of integrated rural
development and prosperity of backward rural areas.
 Self-Help Group (SHG) Bank Linkages Programme for
Micro Finance: The primary emphasis of SHGs is on the rural
poor, who lack long-term access to the formal
banking system. Therefore, the targeted customers of SHGs
include small and marginal farms, agricultural and
nonagricultural workers, artisans, and so on. SHGs encourage
thrift in small portions by asking for a minimal contribution
from each member. Credit is granted to needy members at
fair interest rates, to be returned in small instalments from the
pooled funds.
 As the banking system expanded rapidly, it affected the
rural farm and non-farm output, income, and
employment positively. After the green revolution,
farmers could use credit facilities to avail of different
loans in order to meet their production needs. Besides,
famines have become an event of the past with the rise
in buffer stock.
Critical Appraisal of Rural Banking
 The rural banking system has provided support to the
farmers and has helped in rural development, directly
and indirectly. With it, the farmers can now avail credit
at cheap rates of interest from the formal sources of
rural credit. It has also helped the farmers in increasing
rural farm and non-farm output, income, and
employment in rural areas. Besides these benefits, the
agricultural credit structure of the economy faces a lot
of problems. Some of these problems include:
1. Insufficiency: As compared to the demand
for rural credit, its volume in India is still
insufficient.
2. Inadequate Coverage of Institutional
Sources: As the institutional credit
arrangements have failed to cover the
country’s rural farmers, they remain
inadequate.
3. Inadequate Amount of
Sanction: Besides credit arrangements, the
amount sanctioned by the sources of rural
credit is inadequate, because of which the
farmers divert the loans for different
unproductive purposes. As a result, the basic
purpose of such types of loans gets diluted.
4. Less attention to Poor or Marginal Farmers: Under the rural
banking system, the credit requirements of poor or marginal
farmers have been given less attention. It is because the demand
for credit by these needy farmers gets rejected by banks and other
institutional sources, as they do not have collateral. However,
because of better creditworthiness, well-to-do farmers get more
attention.
5. Growing Overdues: Overdue is one of the major problems in
agricultural credit that keeps on growing. The basic reason behind it
is the poor capacity of farmers to repay the loan amount, because
of which credit agencies are now becoming more cautious while
granting loans to the farmers. It is presumed that the rise in
agriculture loan default is because the farmers are refusing to pay
back loans. Therefore, this issue has now become a threat to the
smooth functioning of the rural banking system and hence needs
control.
Because of the above-stated problems, the expansion and
promotion of the rural banking system have been slow after the
reforms. The formal institutions except the commercial banks have
failed to develop a culture of lending to needy farmers, deposit
mobilisation, and effective loan recovery.
 Features of an Effective
Rural Credit System
A rural credit system is said to be effective if it has the following
features:
 1. Low-Interest Rate: The banks or other institutional
sources should grant loans with easy credit terms. It means
that the rate of interest on the borrowed amount should be low
and for a fairly long period.
 2. Equity to the Farmer: When a farmer fails to repay the
loan amount, his property should be liquidated in a way that a
fair price is secured to him and after meeting the amount due
to creditors and the cost of liquidation, the rest of the amount
should be returned to him.
 3. Convenience to Farmer: The repayment procedure
should be formed in a way that is convenient to the farmer’s
needs. It can be done by allowing easy installments that
spread over the period, and in other ways.
Agricultural Marketing

 The agricultural sector is the backbone of the Indian

economy and contributes significantly to the country’s
Gross Domestic Product (GDP) .
 The agricultural sector is also the primary source of
livelihood for a significant portion of the population. In
recent years, the Indian government has taken several
measures to improve the agricultural sector and
increase its competitiveness in the global market.
 The agricultural marketing system is one of the critical
aspects of the agricultural sector’s growth and
development. Agricultural Marketing refers to the
process of assembling, storing, processing,
transporting, packaging, grading, and distributing
different agricultural commodities across the country.
The agricultural marketing system plays a
crucial role in farmers’ lives as it allows
them to dispose of their surplus produce at
a fair and reasonable price. Besides,
agricultural marketing also includes different
activities that help in the movement of fair
produce from the producer to the ultimate
consumer.
 Problems faced by Farmers
The farmers used to face a number of problems. Some of
them are as follows:
 Manipulations by Big Traders: Before independence,
the big traders used to manipulate farmers by making
them suffer from the faulty weighing of goods and
manipulation of accounts while buying produce from them.
 Lack of Storage Facilities: To keep their produce in
storage to sell them later at a better price, the farmers
didn’t also have proper storage facilities. This problem is
still present, as 10% of the goods produced by farmers in
the farms get wasted due to lack of storage.
 Lack of Market Information: As the farmers didn’t have
proper information on the prevailing prices for their goods,
they were forced to sell at low prices.
 Because of these problems faced by the farmers, it became
essential to regulate the activities of private traders.
Measures to Improve the Agricultural
Marketing System
 The Indian government has taken several measures to improve
the agricultural marketing system. Some of the measures are:
1. Regulated Markets:
 Regulated markets or Agricultural Produce Market Committees
(APMCs) were established to ensure fair prices for the farmers
and prevent exploitation by middlemen. The APMCs are
responsible for regulating the buying and selling of agricultural
products and ensuring that the farmers receive a fair price for
their produce and to benefit the consumers too.
2. Infrastructural Facilities:
 The government has also focused on developing
infrastructural facilities such as storage, transportation, and
marketing. Storage facilities such as warehouses and cold
storage help in reducing wastage and preserving the quality of
the produce. Transportation facilities such as roads, railways,
and airports facilitate the movement of agricultural products
from one place to another. Marketing facilities, such as mandis
and haats provide a platform for farmers to sell their produce
directly to consumers.
3. Cooperative Marketing:
 Cooperative marketing is a system where farmers come
together to form a cooperative society and sell their produce
collectively. This helps in reducing the dependence on
middlemen and ensures a fair price for the farmers. The
cooperative societies also provide access to credit and other
support services to the farmers.
Benefits gained by farmers from Cooperative Marketing
 As the farmers sell their produce together through one agency,
Cooperative Marketing improved the bargaining power of
farmers.
 Cooperative Marketing Societies also provide farmers with
credit whenever they have immediate cash requirements.
 The Cooperative Societies often have storage facilities through
which instead of selling their produce in a hurry, the farmers
can wait for better prices and then sell their produce.
 Cooperative Marketing System also provides the facility of bulk
transportation at a cheaper price.
4. Different Policy Instruments:
The government has also implemented different policy
instruments to improve agricultural marketing. These
include price support policies, minimum support prices,
and direct procurement from farmers. Price support
policies ensure that farmers receive a fair price for their
produce, while minimum support prices guarantee a
minimum price for crops. Direct procurement from
farmers ensures that the farmers receive a fair price for
their produce and reduces their dependence on
middlemen.
 Minimum Support Prices (MSP): The Minimum Support
Price is the price at which the government purchases crops
from the farmers to ensure that they receive a fair price for
their produce. The MSP is fixed by the government based on
the recommendations of the Commission for Agricultural
Costs and Prices (CACP) and is announced before the sowing
season.
Maintenance of Buffer Stocks: The
government maintains a buffer stock of
essential food items such as wheat, rice,
and sugar to ensure that they are available
during times of scarcity and to stabilize the
prices in the market.
Public Distribution System (PDS): The
Public Distribution System is a government
initiative that provides essential
commodities to the poor and needy at
subsidised prices. It includes items like rice,
wheat, sugar, and kerosene oil, which are
made available through a network of Fair
Agricultural Diversification

 Agricultural Diversification means changing cropping

pattern or shifting the agricultural workforce into other
non-agricultural activities.
 The process of diversification involves diversifying an
economy’s revenue sources away from a single source and
towards an ever-increasing range of industries and
markets. It has historically been used as a strategy to
encourage positive economic development and growth.
Diversification into other industries is essential because it
would give residents of communities long-term
alternatives for a living while retaining ecological balance.
The creation and distribution of economic resilience
measurements, strategies, and tools benefit from
diversification by encouraging the exchange of
experiences and opportunities.
Need for Diversification

Every economic activity has a workforce absorption

limit beyond which not only potential is under utilised
but also productivity stops growing. For
example, Agriculture sector diversification will offer
individuals choices to make ends meet in addition to
reducing agricultural risk.
The majority of agricultural operations flourish
throughout the Kharif and Rabi Seasons. Those that
rely solely on agriculture do not earn enough to feed
themselves for the rest of the year. Furthermore, in
locations with inadequate irrigation, even the Rabi
Season does not provide consistent revenue. People
in these situations, look for other ways to generate
money.
 During agricultural production, a farmer may face several kinds
of adversities and climatic vagaries such as unpredictable
rainfall, stone hail, drought, flood, and so on. Issues like post-
harvest losses, storage, and a lack of accessible effective
marketing are worsening the situation. Human-wildlife or human-
crops conflict, forest fires, monoculture, plant disease and
infestation, migration, and youth reluctance to agriculture are all
fresh obstacles.
 For more than five decades, Indian agriculture has faced serious
issues due to a rise in input costs to increase production.
However, production proportionates to input maintains for a
period of time before plateauing and then gradually declining in
many cases.
 Farmers have been utilising the common government-promoted
Green Revolution cropping pattern rice-wheat-rice to increase
production for a long time. Following the same cropping plan
over a longer period of time has extracted specific nutrients from
the soil, resulting in soil deficiency in those nutrients as well as a
drop in soil microfauna population.
Benefits of Diversification

Most of the agricultural employment activities

take place in Kharif Season. Therefore, during the
Rabi Season, it becomes difficult for the farmers
to find some gainful employment opportunities in
the areas which lack adequate irrigation
facilities. Therefore, it becomes essential for the
farmers to diversify into other sectors to:
Provide supplementary employment which is
gainful for them.
Enable them to earn higher level income, and
Enable the rural people in overcoming poverty
and other troubles.
Types of Diversification
 1. Diversification of Crop Production
 This represents a change in cropping patterns which implies a
shift in the proportion of an area committed to different crop
production. In simple terms, it means shifting the cropping system
from a single-cropping system to a multi-cropping system The
diversification involves shifting the cropping pattern from food
grains to cash crops. The basic aim of the diversification of crop
production is the promotion of a shift from subsistence farming to
commercial farming. In India, there is still a dominance of
subsistence farming in the agriculture sector and for the cropping
system, the farmers give more importance to cereals such as rice,
wheat, maize, etc.
 With the help of a multi-cropping system, the farmers can reduce
their dependency on one or two crops as with this system they can
now grow a wide variety of crops. Therefore, it is essential to
encourage the farmers in growing a wide variety of crops as it will
also increase their income in return. Besides, with the
diversification of crop production, the risk in farming caused by the
price fluctuations in crops can be minimised, along with a
reduction in the risk happening because of the failure of monsoon.
2. Diversification of Productive
Activities
 The necessity of the hour is diversification through worker
shifts towards different channels of production. It can be met
by directing workers towards either agriculture-related
activities or non-farm activities. Employment in non-farm
activities can help in providing alternate avenues of
sustainable livelihood to the farmers and in increasing their
income level.
 There are several segments in non-farm activities. Some of
these segments have dynamic linkages permitting healthy
growth, while the other segments are in subsistence and low
productivity propositions. Some of the dynamic sub-sectors
consist of food processing industries, agro-processing
industries, tourism, etc. Also, the sectors which have the
potential but lack infrastructure and proper support consist of
traditional household-based industries such as crafts, pottery,
handlooms, etc.
Non-Farm Areas of Employment
1. Animal Husbandry
 Animal Husbandry or Livestock Farming is a branch of agriculture
that is concerned with breeding, rearing, and caring for farm
animals. Livestock refers to the domesticated animals that are
raised for the production of labour and commodities such as
goats, cattle, etc. These animals are usually raised in an
agricultural set-up. Examples of widely held species under
livestock farming include goats, cattle, and fowls (goose, duck,
etc.). India owns one of the world’s largest livestock populations.
 Livestock farming increases economic stability, food security,
transportation, fuel, and nutrition for the family without
interfering with other food-producing activities. Today, the
livestock sector alone provides alternative livelihood options for
more than 70 million small and marginal farmers as well as
landless labourers. A considerable number of women work in the
livestock sector as well. Poultry accounts for the greatest
percentage (61%) followed by others. Other animals that live on
the lower rung include camels, asses, horses, ponies, and mules.
In the year 2019, India had about 303 million cattle, including
110 million buffaloes.
2. Dairying

Dairying is a branch of agriculture which includes

breeding, raising, and utilisation of dairy animals to
produce milk and other different dairy products
processed from it. In simple terms, dairying means
the business of producing, storing, and distributing
milk and milk products. The Indian dairy sector has
performed admirably during the previous three
decades. India ranks first in milk production in the
world due to the successful implementation
of Operation Flood. Milk production in India has
increased from 17 million tonnes (1950-51) to 102.6
million tonnes (2006-07), to 165.4 million tonnes
(2016-17), and to 198.4 million tonnes (2019-20).
 Operation Flood or White Revolution is the movement
for a massive increase in the production of milk in India. It
was started by National Dairy Development Board
(NDDB) in 1970 under the guidance of the chairman (at that
time), Dr Verghese Kurien. The basic aim of this programme
was the creation of a nationwide milk grid.
 Under the Operation Flood system, based on different
grades, all the milk produced is pooled by the farmers which
is then processed and marketed to the urban areas/centres
with the help of cooperatives. For the marketed processed
milk the farmers are assured a fair price and income. Gujrat
successfully and efficiently implemented milk cooperatives.
The major milk-producing states include Gujrat, Uttar
Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh,
Rajasthan, and Punjab. Besides, some of the emerging
productive sectors which are becoming essential for
diversification are eggs, meat, wool, and various by-products.
3. Fisheries

 Fisheries is the occupation in which people are devoted to

catch, process, or sell fish and other aquatic animals. The
fishery sector plays an essential role in the socio-economic
development of the country. Fisheries development in
India has progressed significantly as a result of progressive
increases in budgetary allocations and the introduction of
new technology in fisheries and aquaculture.
 The water body is regarded as a ‘mother’ or a ‘provider’ by
the fishing community. Water bodies such as the sea,
oceans, rivers, lakes, natural aquatic ponds, streams, and
so on are therefore essential and life-giving source for the
fishing community. Currently, inland fish production
accounts for approximately 65% of total fish production,
with the remaining 35% coming from the marine sector
(sea and oceans).
 The fishing sector is a growing diversification alternative. It
accounts for around 0.9% of the total GDP. The economic
growth of the fisheries sector may be attributed to active
investment and budgetary allocations in its favour. Kerala,
West Bengal, Gujarat, Andhra Pradesh, Maharashtra, and
Tamil Nadu are the biggest fish-producing states. The
participation of women in fishing is not active, but 60% of
the workforce of fishing in export marketing and 40% of
the workforce in internal marketing are women. Therefore,
it is essential to increase the credit facilities for
fisherwomen in the form of Self-Help Groups and
Cooperatives, so that they can meet their working capital
requirements for marketing.
 Besides, some of the major problems faced by fisher-
worker poor families include Low per capital earnings,
Widespread underemployment, High illiteracy rate, and
Absence of mobility of labour to other sectors.
 4. Horticulture
 Horticulture is the science or art of cultivation of fruits, vegetables,
flowers, tuber crops, spices and plantation crops, and medicinal and
aromatic plants. With a diverse climate and soil conditions, India has
adopted the cultivation of a wide range of horticulture crops. These
crops play an important role in supplying food and nutrition, as well as
solving job difficulties. India has adopted horticulture because one can
find varying soil and climatic conditions here. Therefore, horticulture is
an essential sector for potential diversification and value addition to
agriculture.
 The horticulture industry accounts for almost one-third of agricultural
output and 6% of India’s GDP. India is the second-largest producer of
fruits and vegetables and has emerged as a global leader in the
production of several fruits, including mangoes, bananas, coconuts,
cashew nuts, and a number of spices. Many farmers’ economic
conditions have improved and horticulture has become a method of
improving life for many underprivileged groups. Flower harvesting
nursery care, hybrid seed production and tissue culture, fruit and
flower propagation, and food processing are all lucrative jobs for
women in rural regions.
 5. Information Technology

 Information Technology (IT) is a branch of engineering that deals

with the use of computers and telecommunications for retrieving,
storing, and transmitting information. Many of the sectors of the
Indian economy have been revolutionised because of Information
Technology. With the help of appropriate information and different
software tools, to prevent or reduce the chances of an emergency,
the government of India has been able to successfully predict the
areas of food insecurity and vulnerability. Besides, as the IT sector
circulates information regarding emerging technologies and their
applications, prices, soil conditions and weather conditions for
growing different crops, etc., it has positively affected the
agricultural sector.
 Information Technology acts as a great tool to release creative
potential and knowledge embedded in society. Also, the IT sector
has the potential to generate employment in the rural areas.
Therefore, the major objective behind increasing the role of the IT
sector is to make every village a knowledge centre and a place
which provides a sustainable option for livelihood and employment.
Organic Farming

From the experiences of the past years, it is

indicated that modern farming methods
have overused the natural resources base.
Excessive chemical fertilizers and
pesticides were used, which created the
problems of loss of soil fertility, and soil and
water pollution. Ordinary farming depends
intensely on compound composts and
poisonous pesticides, etc., which enter the
food supply, degrade water sources, harm
animals, and affect the ecosystem. Efforts
in advancing technologies which are eco-
friendly are necessary, and one such
Meaning of Organic Farming

The form of agriculture that relies on techniques such

as crop rotation, green manure, compost and biological
pest control is known as Organic Farming. The use of
synthetic chemical fertilizers and genetically modified
organisms are avoided.
It is a process of producing safe and healthy food,
without leaving any adverse impact on the
environment.
Organic agriculture is a whole system of farming that
resorts, maintains and enhances the ecological
balance.
In order to enhance food safety throughout the world,
there is an increasing demand for organically grown
food.
 Benefits of Organic Farming
The benefits of Organic Farming are as follows:
 Economical Farming: Organic Farming is economical as
it offers a means to substitute costlier agricultural input,
such as HYV seeds, chemical fertilizers, pesticides, etc.,
with locally produced cheaper organic inputs.
 Environment Friendly: Chemical fertilizers pollute the
groundwater by rising its nitrate content, whereas, in
organic farming, environment-friendly manures and
fertilizers are used, which discards the use of chemical
fertilizers.
 Sustains Soil Fertility: In Organic farming manures and
compost are used, which maintain soil fertility.
 Provides Healthy Food: Organic farming offers healthier
and tastier food compared to chemical farming. It was
observed that naturally developed food is more nutritious
than the food from compound cultivation.
Inexpensive technique Organic farming
is an inexpensive farming technology for
small and marginal farmers, and unlike,
conventional technology, it does not
require expensive inputs like HYV seeds,
Pesticides, chemical fertilizers etc.
Generates Income through
Exports: Income is generated through
exports as there is a high demand for
organically grown crops.
Challenges before Organic Farming

The following challenges are before Organic Farming:

 Less Popular: There is less awareness about Organic Farming. It
needs to be popularised by creating awareness and willingness on
the part of farmers, to adoption of new technology. There should
also be an appropriate agricultural policy to promote organic
farming.
 Lack of Infrastructure and Marketing Facilities: Organic
Farming faces problems of inadequate infrastructure and marketing
facilities.
 Low Yield: The yield in Organic Farming is less in the initial years
as compared to modern agricultural farming. And because of this,
small and marginal farmers find it difficult to adapt to large-scale
production.
 Shorter Food Life: The shelf-life is shorter in the case of organic
produce as compared to sprayed produce.
 Limited Choice of Crops: There is limited choice in the
production of crops in the case of organic farming.
Future Prospects of Organic Farming

The future prospects of Organic Farming is

in sync with Sustainable Development’s
goal, which targets to ‘end hunger, achieve
food security and improved nutrition and
promote sustainable agriculture’. However,
only 2 per cent of the net sown area in
India is organically farmed, and only 1.3 per
cent of farmers in India are registered for
organic farming. This number shows the
potential in itself.
Organic food is preferred after the rising
domestic market. India is set for quicker
development. The development of India’s
Organic farming has arisen as an elective means of
cultivating that may address quality and sustainability
concerns, yet additionally guarantees a loan-free
future, with expanding awareness about the security
and nature of food.
The government of India is implementing a new
scheme, ‘National Project on Organic Farming‘ for
production, promotion and market development of
organic farming. The main components of this scheme
are:
(i) Putting in place a system of certification of organic
produce.
(ii) Capacity building through service providers
(iii) Financial support for commercial production units
for the production of organic inputs.
(iv) Promotion, extension and market development of
organic farming.
Government Schemes for Rural
Development in India
 Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) 2005:
 The scheme was introduced as a social measure
that guarantees “the right to work”.
 The Ministry of Rural Development monitors the entire
implementation of this scheme in association with state
governments.
 It is the Gram Sabha and the Gram Panchayat which
approves the shelf of works under MGNREGA and fixes
their priority.
 Social Audit of MGNREGA works is mandatory, which leads
to accountability and transparency.
 For the financial year 2021-22, 2.95 crore persons have
been offered work, thus, completing 5.98 lakh assets and
generating 34.56 crore person-days.
Deen Dayal Antyodaya Yojana – National Rural
Livelihoods Mission (DAY-NRLM):
 It is a centrally sponsored programme, launched by the
Ministry of Rural Development in June 2011.
 To eliminate rural poverty through the promotion of
multiple livelihoods and improved access to financial
services for the rural poor households across the country.
 Revolving Fund and Community Investment Fund
amounting to approximately Rs. 56 Crore released to
women SHGs in FY 2021 as compared to approximately
Rs. 32 Crore in the same corresponding period in FY
2020.
 Training on farm and non-Farm based livelihoods, on
covid management and promotion of Agri-Nutri gardens.
Pradhan Mantri Gram Sadak Yojana
(PMGSY):
To provide connectivity, by way of an all-
weather road to unconnected habitations.
Unconnected habitations of designated
population size (500+ in plain areas and
250+ in North-Eastern States, Himalayan
States, Deserts and Tribal Areas as per 2001
census) in the core network for uplifting the
socio-economic condition of the rural
population.
Highest length of road has been completed
under PMGSY in the comparable period over
the last 3 years.
 Pradhan Mantri Awas Yojana – Gramin:
 To achieve the objective of “Housing for All” by 2022, the
erstwhile rural housing scheme Indira Awaas Yojana (IAY)
was restructured to Pradhan Mantri Awaas Yojana-Gramin
(PMAY-G) w.e.f 1st April, 2016.
 To help rural people below the poverty line (BPL) in
construction of dwelling units and upgradation of existing
unserviceable kutcha houses by providing assistance in the
form of a full grant.
 People belonging to SCs/STs, freed bonded labourers and
non-SC/ST categories, widows or next-of-kin of defence
personnel killed in action, ex servicemen and retired
members of the paramilitary forces, Disabled persons and
Minorities.
 Beneficiaries are chosen according to data taken from the
Socio-Economic Caste Census (SECC) of 2011.
 Highest expenditure amounting to Rs. 5854 Cr in FY 2021-
22; double than the FY 2020-21 in the comparable period.
Pradhan Mantri Adarsh Gram Yojana (PMAGY):
 A Government of India initiative for the empowerment of
deprived sections, aims to achieve integrated development
of selected villages through convergent implementation of all
relevant Central and State schemes..
Saansad Adarsh Gram Yojana (SAGY):
 It is a village development project launched by Government
of India in October 2014, under which each Member of
Parliament will take the responsibility of developing physical
and institutional infrastructure in three villages by 2019.
 The Saansad Adarsh Gram Yojana (SAANJHI) was launched on
on 11th October, 2014.
 The goal is to develop three Adarsh Grams by March 2019, of
which one would be achieved by 2016. Thereafter, five such
Adarsh Grams (one per year) will be selected and developed
by 2024.
National Rurban Mission (NRuM):
 The Shyama Prasad Mukherji Rurban Mission (SPMRM)
aims at developing such rural areas by provisioning of
economic, social and physical infrastructure facilities.
 The Mission aims at development of 300 Rurban clusters,
in the next five years.
 The National Rurban Mission (NRuM) follows the vision of
“Development of a cluster of villages that preserve and
nurture the essence of rural community life with focus on
equity and inclusiveness without compromising with the
facilities perceived to be essentially urban in nature, thus
creating a cluster of “Rurban Villages”.
 The objective of the National Rurban Mission (NRuM) is to
stimulate local economic development, enhance basic
services, and create well planned Rurban clusters.
The National Social Assistance Programme (NSAP)
 Itis a welfare programme being administered by the Ministry of Rural
Development.
 This programme is being implemented in rural areas as well as
urban areas.
 NSAP represents a significant step towards the fulfilment of the
Directive Principles of State Policy enshrined in the Constitution of
India which enjoin upon the State to undertake within its means a
number of welfare measures.
 These are intended to secure for the citizens adequate means of
livelihood, raise the standard of living, improve public health,
provide free and compulsory education for children etc.
 In particular, Article 41 of the Constitution of India directs the State
to provide public assistance to its citizens in case of unemployment,
old age, sickness and disablement and in other cases of undeserved
want within the limit of its economic capacity and development.
Mission Antyodaya:
 It seeks to converge government interventions with Gram
Panchayats as the basic unit for planning by following a saturation
approach by pooling resources – human and financial – to ensure
sustainable livelihoo
Government Schemes for Rural
Entrepreneurship in India
Entrepreneurship Development Institution
Scheme
Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
Performance and Credit Rating Scheme
(Implemented through NSIC)
Product Development, Design Intervention
and Packaging (PRODIP)
Khadi Karigar Janashree Bima Yojana for
Khadi Artisans
Marketing Assistance Scheme
Provision of Urban Amenities to Rural
Areas (PURA)
 Innovative Ideas for Rural
Development in India
 Utilization of Local Resources: For example: If there are water
resources like rivers and tanks near by the villages, in summer itself,
arrangements must be made to tap this resource by removing slit in the
tanks, constructing new reservoirs, bunds, canals and simultaneously
strengthening the existing ones, so that the water cannot go waste.
Similarly, if there are any mines like iron, coal and granites, they should
be excavated so that local population can be provided employment.
 Establishment of Rural Industries: All the village industries come
under the following broad categories:
 Agro Based Industries:Sugar industries, Jaggery, Oil processing from oil
seeds, Pickles, Fruit juice, Spices, Dairy products etc.
 Forest Based Industries:Wood products, Bamboo products, Honey, Coir
industry, making eating plates from leaves.
 Mineral based industry: Stone crushing, Cement industries, Red oxide
making, wall coating powders etc.
 Textile Industry: Spinning, Weaving, Colouring and Bleaching.
 Engineering and Services: Tractors and Pump set repairs etc. Small and
medium sized industries to produce agricultural machinery, equipment for
usage in rural areas etc.
 Handicrafts: These include making of wooden or bamboo handicrafts that
are local to that area, traditional decorative products, toys and all other forms
 Services: There are a wide range of services including
mobile repair, agriculture machinery servicing, etc which are
being undertaken under this category.
 Startups: They are entrepreneurial ventures, which are
newly emerged businesses aims to meet marketplace need,
want or problem by developing a viable business model
around products, services, processes or platforms. For
example: Agriculture, Supply Chain, Trading in Agricultural
produce, Processing Agricultural produces, Fisheries – Both
Culture and Trading, Rural Micro Finance, Rural Health – Rural
Primary Health Cared and Rural Education etc.
 Computer & Internet Services: Providing Computer
Training and Repairing Services, Internet based business-like
E-Commerce, Rail & Bus Ticket booking, Digital Marketing
Agency – Examples: Social Media Marketing, Email Marketing
etc.
Encourage Rural Entrepreneurship: They may be of
the following types:
 Individual Entrepreneurship – It is basically single
ownership of the enterprise.
 Group Entrepreneurship – It mainly covers partnership,
private limited company and public limited company.
 Cluster Formation Entrepreneurship – It covers NGOs,
VOs, CBOs, SHGs and even networking of these groups.
These also cover formal and non-formal association of
a group of individuals on the basis of caste, occupation,
income, etc.
 Cooperative Entrepreneurship – It is an autonomous
association of persons united voluntarily for a common
objective.
Agri-startups and Rural Economy

 Agriculture plays a vital role in India’s economy. Over 58% of the

rural households depend on agriculture as their principal means of
livelihood. However, the use of technology in the agricultural industry
has been limited in India. As a result, the agriculture
industry in India contributes merely 17-18% to its GDP. The agro
based industry saw a growth at a CAGR of 16.4% over FY10 to
FY18. Agricultural exports from India reached US$ 38.54 billion
in FY19 and in FY20 (till November 2019) US$ 22.69 billion. With
many initiatives for farmers, the government aims to double farmers’
income by 2022.
 However, in the last couple of years, India has seen a rise in the number
of agritech start-ups that are not only making technology more
accessible but also helping these farmers to improve their lives.
 Agriculture sector in India is suffering from a variety of problems like the
use of outdated equipment, improper infrastructure, and farmers unable
to access a wider range of markets with ease while making just limited
profits on crop sales. Lack of proper infrastructure and supply
chain management are the more pressing concerns.
Current state of Agri-startups
in India
 Despite a pandemic-hit year, agritech start-ups in 2020 saw over $300
million of investments.
 As per a recent study by Accel-Omnivore, funding in the agritech
sector rose from $45.8 million in 2016 to $430.6 million in 2020—
a 4x growth during this period.
 The number of such start-ups has shown steady growth with around
600-700 start-ups dominating the Indian agritech ecosystem.
 According to a Ken Research report,
 the Indian Agritech market was expected to grow at a CAGR (revenue) of
32 per cent from FY20 to FY25.
 Karnataka, Maharashtra and Delhi-NCR had the most number of Agri-tech
start-ups in the country.
 It is estimated that $10bn will be invested in Indian Agri-tech start-ups
over the next 10 years.
 Currently, 8% or 1294 of the total recognized start-ups in the
country are in Agri startups space as per the Economic Survey of 2019-
20.
 Of these, 54% are classified as Agri-tech while the rest are in the
field of dairy farming, food processing and organic agriculture.
Summarization
 Rural development is a process that aims to improve
the economic, social, and cultural conditions of rural
communities. It involves the implementation of policies
and projects that promote human improvement and
socio-economic change in rural areas. The goal of rural
development is to improve the lives of rural people by
involving them in the process.
 Some ways to improve rural development
include: Increasing participation of rural people in
development programs, Decentralizing planning,
Enforcing land reforms, and Increasing access to credit.
 The United Nations defines rural development as a
process that brings change to rural communities from
traditional to progressive ways of living.
Some conclusions about rural development include:
Rural development should involve rural people
Rural development should be a collaborative effort that
involves the people of the rural communities.
Rural development should consider a variety of
factors
Rural development should consider the diversity of rural
areas, and include a variety of factors such as
technology, collaborative dimensions, and public policy.
Rural development should extend beyond
agriculture
Rural development should recognize the economic
importance of non-agricultural activities, such as
ecotourism, cottage industries, and off-farm activities.
Rural development should include social
infrastructure
 Rural development should include social infrastructure,
such as recreational activities.
Rural development should include investments
 Rural development should include investments from a
variety of sources, including the EU, national, regional, and
local sources.
Rural development should include solutions for young
people
 Rural development should include solutions to attract
young people to rural areas.
Rural development should include solutions for
women
 Rural development should include supporting measures to
create new work opportunities for women.
Rural development should include
improved financial inclusion
Rural development should include improved
financial inclusion for smallholder
households.
Rural development should include critical
analysis of policies
Rural development should include a critical
analysis of the policies implemented, their
key features, and their limitations.
Links
https://
www.youtube.com/watch?v=DoVGbPa0jHw
https://
www.youtube.com/watch?v=qkqtcXuogu4
https://
www.youtube.com/watch?v=c5pekMjAapo
https://
www.youtube.com/watch?v=q0QILMpKRHI
Thank you